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Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC. 6187 Carpinteria Avenue, Carpinteria CA. 93013, (800) 874-6910. Randall Wealth Management Group and PlanMember Securities Corporation are independently owned and operated. Trevor R. Randall - CA Insurance License #0I08678

 

PlanMember is not responsible or liable for ancillary products or services offered by Randall Wealth Management Group. The views expressed may not necessarily reflect those held by PlanMember Securities Corporation (PSEC). Material presented is believed to be from a reliable sources and PSEC makes no representation as to it accuracy or completeness. 

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6 Life Insurance Mistakes to Avoid


A 2015 Bankrate Money Pulse survey found that even though about 6 in 10 Americans claimed to have life insurance, nearly half of the respondents did not have adequate coverage to meet the financial needs of their families. This means that not only are many families in danger of being underinsured, there is also a huge number without life insurance to protect them at all. While some of this can be explained by a lack of urgency in younger people to purchase insurance, there are also some holdouts who don’t really understand how it works. For the life-insurance seekers, here are some costly mistakes to avoid: Mistake #1: Thinking you can’t afford life insurance. The abundance of options available to people of all ages, income levels, and health statuses can make life insurance attainable for people who may have believed it was only for the wealthy. In fact, the complications and sudden expenses of unexpected death can unfortunately mean your family may be unable to afford notto have the security of a life insurance policy. Mistake #2: Relying entirely on an employer-sponsored life insurance policy. While it is convenient, opting to only utilize the group life insurance policy through work will almost certainly not provide you with enough coverage. Unlike traditional life insurance, group life insurance disbursements over $50,000 can be considered taxable income and your loved ones will have to make do with less after taxes. Group life insurance also does not provide coverage if you change jobs, experience unemployment, or must leave your position due to illness. Mistake #3: Purchasing inadequate coverage. People often prioritize their discretionary spending over insurance coverage when making their budget, which can lead to insufficient funds being used for insurance. Review your budget and determine if the amount of coverage you’ve chosen is enough for your family’s needs and if you can afford the difference in premiums for better coverage. Mistake #4: Choosing the wrong type of insurance. There are significant differences between term and whole life insurance, and these differences can affect the affordability, length of coverage, tax implications, versatility, and customization of your policy. Review any policies you have and make sure they still meet your needs. If not, they may be convertible and will allow for you to work with your agent to adjust the policy to better suit your circumstances. Mistake #5: Not updating your beneficiaries. A lot can happen in just a few years; and if you do not make a habit of reviewing your beneficiaries on a regular basis, there is a chance they no longer match up with your wishes. This is especially true if there has been a divorce, birth, death, or family dispute in recent years. Beneficiaries on life insurance policies generally override wills, so keeping this up-to-date is particularly important. Include contingencies in case your primary beneficiary passes away or if one or more of your beneficiaries is a minor and will need a guardian or trust to handle disbursements until they become legal age. Mistake #6: Not seeking professional advice. Life insurance can be complicated, and to ensure you have not overlooked something important, such as the tax implications for your loved ones, it may be wise to consult with a licensed professional. This will allow for peace of mind that you have selected the best policy for you and your family’s needs.

Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC. 6187 Carpinteria Avenue, Carpinteria CA. 93013, (800) 874­-6910. Randall Wealth Management Group and PlanMember Securities Corporation are independently owned and operated. PSEC is not responsible or liable for ancillary products or services offered by Randall Wealth Management Group or this representative. CA Insurance License: #0727953.

This newsletter was prepared by Integrated Concepts Group, Inc. The opinions expressed in this newsletter are for general information only and are not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. The views expressed are those of the author and may not necessarily reflect those held by PlanMember Securities Corporation. Material presented is believed to be from a reliable sources and PSEC makes no representation as to it accuracy or completeness.

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